PPN 06/20 Social Value Model Guidance For Transport Bidding

This article provides guidance on the PPN 06/20 Social Value Model and summarises key changes to UK public sector transport contracts. It is intended for companies wishing to bid for and operate public transport contracts covering UK rail, bus, tram and micromobility schemes. This guide is for:

• Policy advisors and consultants in the transportation and public procurement sectors who wish to know about social value
• ESG and sustainability professionals working in or with public  transport companies.

The UK’s public transport contract landscape has changed dramatically with the introduction of Procurement Policy Note (PPN) 06/20, fundamentally altering how companies bid for and operate rail, bus, tram, and micro mobility contracts. PPN 06/20, mandatory since January 2021, requires all central government departments and related bodies to explicitly evaluate social value as a core part of their procurement decisions, assigning it a minimum 10% weighting in all tenders.

This shift means that social value is no longer a discretionary or “tick-box” exercise but a key differentiator in winning contracts. For the transport sector, this brings new challenges and opportunities: bidders must now demonstrate clear, measurable social and environmental benefits aligned with government priorities, from tackling economic inequality to fighting climate change. I have summarised these pivotal changes, helping policy advisors and ESG professionals understand the implications of PPN 06/20 and how to develop competitive, compliant bids in this evolving environment.

PPN 06/20 and the evolution of social value in public procurement for public transport

Embedding social value in UK procurement began with the Public Services (Social Value) Act 2012, which required public bodies to ‘consider’ how procurement might enhance economic, social, and environmental well-being in their area. While groundbreaking, the Public Services (Social Value) Act initially had limited impact as it merely encouraged consideration of social value rather than mandating its inclusion in procurement decisions.

Procurement Policy Notes (PPN) 06/20, which came into effect in the dying days of 2020 launched a new model to deliver social value through government’s commercial activities. Unlike the 2012 Act, PPN 06/20 made it mandatory for central government bodies to explicitly evaluate social value in procurement decisions and required a minimum weighting of 10% be assigned to social value in all government tenders. This ensured social value would play a significant role in public procurement, including transport contracts.

Since PPN06/20 , social value weightings in government contracts have surged from the initial 2.5-5% to at least 10%, with many reaching 15-20%. Some authorities, like Manchester City Council, even apply a 30% weighting. Introducing quality score of up to 20% represents a fundamental shift in how transport contracts are awarded, moving from a primarily cost-focused approach to one that considers broader societal benefits.

What is PPN 06/20? Original framework and purpose

The original framework and purpose of 06/20 was to apply Social Value Model. PPN 06/20 guidance led by the Cabinet Office. PPN06/20 was a landmark policy for social value in public procurement, requiring its consideration in contract awards at minimum of 10% for central government contracts.

However, the Procurement Act 2023 has introduced a new PPN 002 and a revised Social Value Model, intended to replace PPN 06/20 and supporting guidance.

What’s changing in 2026: How PPN 06/20 is evolving for public transport under the Procurement Act 2023

February 24, 2025 was the date the Procurement Act 2023 was passed. This legislation represents the most significant change in UK procurement laws in over 30 years, public procurement reform.  The Procurement Act 2023 focuses on simplifying public procurement for public benefit, transparency, scrutiny, and value for money but are also legal obligations not nice to have.

A key change introduced by the Procurement Act 2023 is the shift from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). This means that transport contract bidders are now evaluated not just on price but on a wider range of factors including social value, sustainability, and environmental performance. For transport providers, this necessitates a comprehensive approach to bidding that demonstrates their contribution to these broader societal goals.

What are the key social value PPNs for public procurement in 2026?

There are 3 key social value PPNS for public procurement in 2026 

1. PPN06/20 – 1^st January 2021 effective until 1^st October 2025  

Procurement Policy Note (PPN) 06/20, became mandatory for all new central government procurements from 1 January 2021. Until October 1, 2025, all UK contracting authorities have the flexibility to use either the old (PPN 06/20) or new (PPN 002) approach. For procurements started before February 24, 2025, PPN 06/20 continues to apply.  However, the principles of social value, as enshrined in PPN 06/20, remain relevant and are expected to continue to be applied by authorities.

2. PPN002 available to use from 24^th February 2025, mandatory from 1^st October 2025

3. PPN003 available to use from 24^th February 2025, mandatory from 1^st October 2025 

There are 2 key Procurement Policy Notes (PPNs) that put social value at the heart of government contracting: PPN 002 and PPN 003.  These set out clear requirements and guidance for embedding social value into public sector purchasing decisions.

PPN 002 introduces an updated Social Value Model that all central government departments, executive agencies, and non-departmental public bodies must use when awarding contracts. This model requires a minimum 10% weighting for social value in the evaluation of bids, with flexibility for higher weightings depending on the contract’s scope and strategic priorities. The Social Value Model is structured around the government’s five missions, each with specific outcomes such as fair work, skills for growth, resilient supply chains, sustainable procurement, crime reduction, employment opportunities for disadvantaged groups, and wellbeing improvements.

PPN 003 complements PPN 002 by providing updated guidance on how to embed social value throughout the procurement lifecycle. It emphasises the need for social value to be considered from the strategic business case stage, with commitments clearly recorded in tender documents and measured through contract performance. Authorities are encouraged to engage early with stakeholders, including local communities and service users, to ensure social value outcomes are relevant and impactful. 

Take our social value quiz to check your readiness ahead of your next bid!

Summary of key social value PPNs in 2026

A summary of Key Social Value PPNS in 2026 is shown in Table 1. 

PPN 06/20 Social Value Model guidance for transport bids and contract awards in 2026

PPN 06/20 is still valid, but its application is being phased out as the Procurement Act 2023 takes effect. PPN06/20 remains valid for all procurement processes (including frameworks) started before February 24, 2025. Until 1^st October 2025, UK contracting authorities can choose to use either PPN 06/20 or the new PPN 002 and Social Value Model. For example Liverpool bus franchise which is due to be released to bidders in  summer 2025 could use the Social Value Model using PPN06/20 and PPN002 or PPN003.

What bid managers must demonstrate to comply with PPN 06/20 in 2026

The bid evaluation process is a key component of public sector procurement, shaping how contracts are awarded and ensuring the best value for money for taxpayers. For suppliers, understanding how procurement scoring works—and how social value commitments and award criteria are applied—can provide a significant competitive advantage in securing contracts.

UK public sector buyers are required to run a fair and transparent bid evaluation process, with all parameters and award criteria clearly communicated to bidders. Typically, the process begins with pass/fail requirements, such as demonstrating technical ability, relevant accreditations, and minimum financial thresholds. Only those who meet these basic criteria progress to the formal evaluation stage, where submissions are scored on quality and price.

Procurement scoring is typically split between quality (including technical merit and social value) and price. The weighting of these elements varies by contract but is always designed to achieve value for money—not simply the lowest price. For example, a contract might use a 60/10/30 split for quality, social value, and price, respectively, signalling the importance of non-price factors.

Social value commitments have become a significant part of procurement scoring, especially since the introduction of the Social Value Model in UK government contracts. Social value can account for at least 10% of the total score, and sometimes up to 25%, depending on the authority and contract. This means that strong, measurable social value commitments—such as creating jobs, supporting local communities, and reducing environmental impact—can directly boost a bid’s score and provide a competitive advantage.

How to score highly on social value commitments using PPN 06/20 and PPN003

To score highly on social value commitments using PPN 06/20 and PPN 003, organisations must focus on outcome-based metrics, robust social impact measurement, and clear alignment with the government’s thematic priorities. Here’s how you can maximise your score:

1. Use outcome-based metrics

Central government procurement now requires explicit evaluation of social value, not just consideration. This means your commitments must be measurable and outcome-focused—demonstrating real, positive changes rather than just activities or outputs. Use recognised frameworks, such as the National Social Value Standard, which offers over 800 metrics (many monetised) to quantify social, environmental, and economic value. Prioritise metrics that show tangible improvements, like increased local employment or reduced carbon emissions.

2. Measure social impact effectively

Social impact measurement is essential for evidencing your added value delivery. Collect both qualitative and quantitative data—workforce statistics, carbon footprint data, testimonials, and certifications—to support your claims. Where possible, monetise outcomes to provide a clear, comparable value for your interventions, which helps evaluators understand the scale of your impact.

3. Meet and exceed scoring thresholds

PPN 06/20 and PPN 003 mandate a minimum 10% weighting for social value in tender evaluations. Ensure your submission addresses all relevant social value criteria and provides strong evidence for each claim. Exceeding the minimum requirements, especially with innovative or high-impact initiatives, can help you stand out. Examples of these schemes are company led charity schemes or fitness events for the staff to name but two.

4. Align with thematic priorities

The Social Value Model sets out five key themes: COVID-19 recovery, tackling economic inequality, fighting climate change, equal opportunity, and wellbeing. Tailor your commitments to these areas, selecting the most relevant themes for your contract. Demonstrate how your activities contribute to these priorities with clear, outcome-based evidence.

5. Deliver and evidence added value

Go beyond compliance by showcasing how your approach delivers added value—benefits that would not occur without your intervention. This could include new jobs, skills development, or environmental improvements. Clearly articulate your theory of change, linking inputs and activities to meaningful, long-term impacts.

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Applying social value themes from PPN 06/20 in public transport tenders

The social value themes for PPN 06/20 are the five key priority areas defined in the UK Government’s Social Value Model in 2021 see table below. However these have been superseded by Procurement Act  but there are some key themes that will come through any public transport procurement exercise as outlined in Table 2.

These themes guide central government departments and in-scope organisations in evaluating and delivering social value through procurement, ensuring that contracts contribute to national priorities such as supporting communities, reducing inequality, promoting environmental sustainability, advancing equal opportunities, and improving overall wellbeing

Aligning procurement activities with the Procurement Act 2023 and PPN 003

Strategic alignment between procurement activities and the Procurement Act 2023 (effective from February 24, 2025) is now a legal requirement for public sector organisations. The Act, alongside PPN 003, mandates that social value considerations must be embedded at the strategic business case level rather than as an afterthought. This early-stage planning approach ensures that economic, social, and environmental wellbeing factors are considered from inception.

Pre-market engagement has been elevated in importance, with the Act introducing a new preliminary market engagement notice requirement that must be published before the tender notice. This engagement allows authorities to shape requirements collaboratively with potential suppliers, service users, and communities in the relevant area, creating more effective and responsive procurement outcomes.

Holistic procurement practices are encouraged through the Act’s emphasis on cross-organisational partnerships and innovative delivery models such as co-commissioning services across multiple public bodies. These approaches maximise social impact while supporting the government’s five missions, including economic growth and environmental sustainability.

Policy integration is strengthened through the Act’s explicit alignment with the National Procurement Policy Statement (NPPS), which contracting authorities must “have regard to” under Section 13. This integration ensures that procurement decisions actively contribute to national priorities while addressing local needs, creating a coherent framework for delivering measurable social, economic, and environmental value through public spending.

Why early-stage consideration of social value (PPN 003) is now a legal requirement

Early-stage consideration of social value in public procurement is now a legal requirement for the UK public sector authorities due to updates in PPN 003, which align with the latest Procurement Act and strengthen statutory obligations for in-scope organisations. 

These statutory obligations require contracting authorities to consult stakeholders early and to record and reference social value commitments in tender documents, ensuring transparency and accountability throughout the procurement lifecycle. The enforcement of the Social Value Act through PPN 003 means that authorities must now demonstrate how their procurement activities will deliver well-being outcomes for communities, support local economies, and promote environmental sustainability.

By integrating social value from the outset, the UK public sector authorities not only achieve legal compliance but also maximise positive social impact, aligning their procurement strategies with national and local priorities. This approach ensures that public spending delivers measurable added value and meets the rigorous requirements of Social Value Act enforcement.

How to document and evidence social value scoring under PPN06/20 and PPN002/3 in public transport tenders

To document and evidence social value scoring under PPN06/20 and PPN002/3 in public transport tenders, organisations must establish clear audit trails throughout the procurement process. Begin by embedding social value requirements in your tender documentation, ensuring bidders understand the expectations and criteria for social value delivery. Use detailed scoring matrices to transparently assess each bid, applying at least a 10% weighting for social value as mandated by policy.

For robust evidence-based evaluation, collect and validate supporting materials from bidders, such as case studies, projected outcomes, and monitoring plans. This approach enables contracting authorities to objectively compare offers and justify their scoring decisions. Ongoing impact reporting is crucial—successful suppliers should be required to regularly submit data and progress updates against agreed social value commitments, using recognised frameworks like the Social Value Model.

By maintaining comprehensive audit trails and leveraging structured scoring and reporting tools, authorities can ensure transparency, accountability, and compliance with government social value policy, ultimately delivering measurable benefits through public transport contracts.

Managing contracts that span pre- and post-2025 procurement regulations

Managing transitional contracts that span the pre- and post-2025 procurement regulations requires careful navigation of regulatory crossover. Contracts whose procurement began before 24 February 2025 remain governed by the Public Contracts Regulations 2015, while those commenced on or after this date fall under the Procurement Act 2023. This dual period necessitates dual-framework management, where contracting authorities may operate under both regimes simultaneously, especially during the transition phase3.

To ensure phased compliance, authorities should document which framework applies to each contract and maintain clear records of the rationale for their chosen approach. This is particularly important for frameworks and dynamic purchasing systems, which may operate under the old rules even after the new Act takes effect.

Effective contract handover between regimes involves aligning processes, updating documentation, and briefing teams on new requirements such as key performance indicators and transparency obligations introduced by the 2023 Act. By proactively managing these transitional arrangements, organisations can minimise disruption, ensure legal compliance, and deliver consistent value across all procurement activities.

Transitional considerations: which rules apply, and when?

Please see Table 1 for which rules and apply when.

Key points to guide your 2026 social value bid strategy

The 5 key points to develop a 2026 Social Value bid strategy:

1. Understand the social value model: Be familiar with the eight outcomes and develop strategies to address them in their bids.
2. Establish measurement systems: Implement a system to measure and report on social value KPIs. An example is given below for a sample transport company

3. Engage with communities: Develop meaningful relationships with local communities to understand their needs and how transport services can address them, saving feedback. 
4. Upskill saff: Ensure staff understand the importance of social value and how to embed it in service delivery.
5. Highlight local connections: SMEs should emphasise their community connections as a competitive advantage.

Are we aligning with the priorities in the social value model and national policy?

Ensuring policy alignment with national priorities is essential for successful and compliant procurement. The Social Value Model’s thematic focus directly supports the UK Government’s strategic objectives, such as economic growth, environmental sustainability, and community wellbeing. By integrating the model into procurement processes, organisations demonstrate commitment to national missions and deliver measurable outcomes that reflect both local needs and broader policy goals. Social Value Model integration throughout the procurement lifecycle ensures every contract advances these priorities, maximising social impact and fulfilling statutory requirements.  It should be noted that in all of the public transport procurement that I have worked on to date by far economic growth is the most popular metric.

Do we have the internal capability to measure and track social value impact?

 I would recommend organisations assess whether they have the internal resources and data capability to effectively measure and track social value impact.  To win public transport tenders, robust performance tracking is essential, requiring dedicated teams or systems to collect, analyse, and report on impact metrics aligned with procurement objectives. Utilising monitoring tools – Excel spreadsheets is the most common reporting tool I see – enables organisations to capture both quantitative and qualitative data on social value deliver. 

Monthly analysis of these metrics can ensure ongoing compliance and provides evidence of added value which can then be used to demonstrate social value delivery and evidence at transport bid stage.

Are social value outcomes embedded in delivery, not just bid documents?

Social Value Outcomes should very much be embedded in delivery, not just bid Documents.

Tools and guidance for complying with PPN 06/20 and Procurement Act in 2026

There are no government tools or compliance templates that existing for helping transport bidders to comply with social value. The best advice I can give is to read the evaluation guidance given within each bidder. As yet there does not exist any best practice resources or training materials that are freely available but please check out https://surbonconsulting.com/downloads/ .

When to involve legal, commercial, and social value leads in bid preparation

To write a winning social value response at bid level, the table below describes the roles and responsibilities of the leads that are needed to write a social value bid response. All leads need to be involved during the bid to ensure the requirements are met in a timely manner.

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